RTX Corporation (NYSE:RTX) ranks among billionaire David Tepper’s 10 favorite stocks. On February 4, Wolfe Research reaffirmed its Outperform rating and $235 price target for RTX Corporation (NYSE:RTX) after the company reached a framework deal to increase missile manufacturing in pursuit of the Pentagon’s goal to improve the defense industry’s capabilities.
The SM-3IB missile program, which Wolfe Research reports was “on the chopping block by the current administration” only a year ago, may see plans to triple production as part of the arrangement.
According to the firm, RTX’s Raytheon division might see an additional revenue boost of roughly $7-8 billion from the manufacturing build-out, which would represent a 25% implied growth in contrast to the 2025 run-rate. The segment’s current 6% compound annual growth rate may also experience “a couple percent upside pressure” as a result.
RTX Corporation (NYSE:RTX) is a global aerospace and defense company that designs, manufactures, and services advanced systems, engines, and solutions for defense, commercial, and government customers. It focuses on connecting and protecting the world through innovations in areas such as missiles, aircraft engines, sensors, cybersecurity, and space technology.
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Disclosure: None. This article is originally published at Insider Monkey.
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